The Chancellor Philip Hammond promised a budget for “the strivers, the grafters and the carers”. Recognising these people as the “backbone of our community and economy”, he said his proposals would pave the way for a “brighter future”. While the budget came with some good news, Mr Hammond should have used yesterday’s speech to hit the growth button for Britain’s small Businesses. First, the good news Mr Hammond announced measures that will help small businesses: the VAT threshold will remain unchanged for a further two years Entrepreneurs Tax Relief will be retained he will increase UK Export Finance’s direct lending for exporters by up to £2bn and will extend the British Business Bank’s start-up loans funding by £200m business rates for all retailers in England with rateable value of £51,000 or less will be cut by one third, providing a £900m boost for smaller firms taking on apprentices, the Apprenticeship Levy will be cut in half a freeze on taxes rises on beer, cider and spirits, helping pubs across the country The chancellor also earmarked £1.6bn for new technologies to help tackle the UK’s productivity puzzle and create the high-wage, high-skilled economy of the future. An opportunity to go further? However, while the Chancellor demonstrated that Britain is open for business, he could have done more to fire up small businesses. For instance, while Hammond’s continued freeze of the VAT threshold is good news, it doesn’t go far enough. He should simplify VAT, or raise the “speed limit”, to stop the threshold from being the barriers to growth that it is. What’s more, his consultation on a new sliding scale system of VAT only adds confusion.  The system is elaborate enough already without adding greater complexity that small businesses can ill-afford. Going further, the small business economy is the foundation that the UK builds on. And while the UK is a great place to start a business, there is still a real challenge for it to become a place where those businesses can grow. These barriers break down into three broad areas: a lack of capital, minimal take up of…